General Motors Stock Receives Positive Reviews
Despite the events of June 2009, General Motors has come back from bankruptcy stronger than critics expected, going public again this past November and receiving rave stock reviews from investors.
Investment analysts at Barclays Capital and Credit Suisse issued promising reviews of GM's stock today, setting price targets over $40. GM's stock is currently trading for just over $35. Barclays gave GM stock an "overweight" rating, meaning that the brokerage firm expects the stock to perform extremely well. Barclays currently gives Ford's stock, which has risen some 60 percent in the last six months, an overweight rating as well.
"General Motors North America is already demonstrating strong earnings power due to disciplined pricing with further updside potential as markets recover and U.S. pricing holds firm," Barclays wrote in an email to clients.
Additionally, Barclays said that GM's strength in China and the continued growth of the Chinese market positions it well for future earnings. Together, GM's continued -- and projected -- future strength in China and its renewed strength in its home market, caused Barclays to set a target price of $42.
Credit Suisse issued a similar target price of $43 for GM, giving it an outperform rating similar to Barclays' overweight rating citing similar sentiments as Barclays.